'Industry' Definition Reference : Live Updates From Supreme Court 9-Judge Bench [Day 2]

Jaising- they are charging high fees which generator those profits. What J Iyer said is that it does not matter to the worker whether you put the surplus back into the organisation. I am concerned with the labour you are putting in it. You are putting surplus and I am putting labour.

Jaising- now if you go and see what is excluded, its very single hospital, university is a charity. what will you do? they all have exemption under Section 15 of the Income Tax Act. Now, you have the concept of deemed universities. They are private universities, and what are they doing? Are they performing a charitable purpose?

Jaising- let be come straight to charity, where will you find the definition of charity? only in the income tax act, 1961, section 16

Jaising-the question raised by mylady what about LPG? I will answer that. Now, you are allowing nuclear energy plants to be manufactured by private parties

J Nagarathna: it is not who is doing the activity but the nature

Jaising- that is what the J Iyer said if its organised or not, that is why triple test is a norm

Jaising- there are staff working in your courtroom who are protected by S.311 but there are people inside your courtroom who are not protected by 311 or your canteen contract workers. therefore the test is you have to under the meaning of sovereign function

Jaising- we are told that dispensing justice is a divine function so it not be covered by the definition of industry. But I ask you a question, what about a sweeper working in your courtroom?

Jaising- there is so much confusion, for instance the requirement of excluding sovereign functions.

J Narasimha: it was not a part of original definiton

Jaising- it came from the Rajastahn judgment

J Nagarathna: judgment on tortious liability

Jaising- that is a small window

Jaising- J Iyer explains that in dealing with charity and classfying it in 3 different categories. The 3rd is purely spritual and points out that they are organisations where there is self-service like ashram. the activity may be organised and fulfil the first two requirements but the label will be voluntarily

J Narasimha: your emphasis is it is worker based and the protection of the worker is slightly different. despite the fact that a group of workers in a particular organisation might definitely need that kind of protection, but if so happens that if industry doesn't come within the ambit, then that is not accessible